The Latest: Revised tax package clears committee

May 2, 2019

HARTFORD, Conn. (AP) — The Latest on the Connecticut state budget (all times local):

10:10 p.m.

A revenue package that rejects many of Democratic Gov. Ned Lamont’s contentious tax proposals, but includes new or higher taxes on everything from capital gains income to alcohol, is advancing through the General Assembly.

The bill cleared the Democratic-controlled Finance Revenue and Bonding Committee on Wednesday.

The bill greatly scales back Lamont’s plan to apply Connecticut’s 6.35% sales tax to more goods and services, impacting five instead of about two dozen. It also nixes a proposed tax on sugary drinks and a proposal to eliminate a planned expanded income tax exemption for Social Security income.

Republicans say the plan still includes too many tax increases.

The revenue proposal will become the basis for upcoming negotiations between Lamont and state legislators on a final budget plan.

__

6:25 p.m.

Connecticut lawmakers are expected to advance a revenue package that rejects many of Democratic Gov. Ned Lamont’s contentious tax proposals, but includes new or higher taxes on everything from capital gains income to alcohol.

An early tally Wednesday shows the bill will likely clear the Democratic-controlled Finance Revenue and Bonding Committee.

The bill greatly scales back Lamont’s plan to apply Connecticut 6.35% sales tax to more goods and services, impacting five instead of about two dozen. It also nixes a proposed tax on sugary drinks and a proposal to eliminate a planned expanded income tax exemption for Social Security income.

Republicans say the plan still includes too many taxes, accusing Democrats of repeating past mistakes of over-taxing and over-spending now that they enjoy a larger majority in the General Assembly.

__

1:02 p.m.

Connecticut lawmakers will consider a tax bill that includes some changes proposed by Democratic Gov. Ned Lamont in February.

Democratic Sen. John Fonfara of Hartford, co-chairman of the General Assembly’s Finance Revenue and Bonding Committee, says the revenue package up for a vote Wednesday applies the state’s 6.35% sales tax to five items. The list includes interior design services, some parking services, transportation companies such as Uber, safety apparel and non-coin operated dry cleaning. Lamont’s original list was much longer.

The bill also includes a 6.35% sales tax on digital downloads and a 10-cent tax on paper and plastic bags, with some exceptions.

Fonfara says the bill eliminates Connecticut’s gift tax and $250 business entity tax, while increasing taxes on alcohol and vaping. It also includes a new local 1% meals tax.